The AlleyWatch 2017 New York Venture Capital Funding Analysis

Total startup funding was down slightly in 2017, falling from $6.8B in 2016 to $6.5B in 2017. The number of deals also fell and more dramatically to 537 in 2017 from 703 in 2016, marking an approximate 24% drop in the number of deals. However, the median deal size increased an impressive 69%, reflecting a maturity in the ecosystem in New York.

The graph below captures some basic trends from a 3-year perspective for aggregate startup funding as well as by round type.

Now we take a look at the NYC Startup fundings that were the largest for the year. These deals largely contributed to total funding for 2017.

These 15 rounds accounted for 34% of the total funding for 2017. There were a number of other late stage deals in the city just outside of this range that contributed to the city’s healthy late stage funding in 2017. While these 15 startups are spread across industries there is a strong bias towards ecommerce startups that included letgo (2x), Casper, Freshly, Vroom, and Spring.

2017: NYC Median round sizes

As we saw before, deals are getting larger in size.

The median round size across every stage in New York increased in 2017 with the strongest percentage gains at seed stage and late stage.

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